GLOBAL MARKETS-Asian shares buoyed by strong U.S. job data, China worry caps gains

* U.S. jobs data shows unexpected strength, calms recession
fears
* China Nov exports fall; import growth may signal demand
recovery
* Some cautiousness prevails ahead of important tariff
deadline
* Oil near multi-month highs as OPEC+ agrees on deeper
output cuts
* European shares giving up some of Friday's gains

By Tomo Uetake
SYDNEY, Dec 9 (Reuters) - Asian stocks edged up on Monday,
catching some of Wall Street's momentum after surprisingly
strong U.S. jobs data, although regional gains were capped by
concerns about China's economic slowdown due to the prolonged
Sino-U.S. trade war.
Japan's benchmark Nikkei .N225 added 0.33% while MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.27%. China's Shanghai Composite .SSEC
stood flat and so did Hong Kong's Hang Seng .HSI .
European shares are expected to give up some of the gains
made on Friday after the U.S. payrolls data, with pan-European
Euro Stoxx 50 futures STXEc1 down 0.14%, German DAX futures
FDXc1 slipping 0.04% and FTSE futures FFIc1 losing 0.35%.
Wall Street rose to near record highs on Friday on the
strong jobs data and some signs of optimism about the U.S.-China
trade talks, with the benchmark S&P 500 .SPX closing within
0.2% of its peak set in late November. .N/C
U.S. job growth increased by the most in 10 months in
November as the healthcare industry boosted hiring and
production workers at General Motors returned to work after a
strike, in the strongest sign that the world's largest economy
is in no danger of stalling. "This economy is still climbing and shattering the records
for longevity," said Chris Rupkey, chief financial economist at
MUFG Union Bank. "Right now, the clouds of recession still
remain well offshore despite troubled economies elsewhere in the
world and a trade war."
Beijing hopes that it can reach a trade agreement with the
United States that satisfies both sides as soon as possible,
China's Assistant Commerce Minister Ren Hongbin said on Monday.
Top White House economic adviser Larry Kudlow said on Friday
that a Dec. 15 deadline is still in place to impose a new round
of U.S. tariffs on Chinese consumer goods, but President Donald
Trump likes where trade talks with China are going. Still, investors think things could change if trade tensions
escalate further, especially if Trump goes ahead with the
planned tariffs on some $156 billion worth of products from
China in mid-December.
The market has been largely working on the assumption that
those tariffs, which cover several consumer products such as
cellphones and toys, will be dropped or at least postponed,
given that Washington and Beijing agreed in October to work on a
trade deal.
Meanwhile, China's exports shrank for the fourth consecutive
month in November, sending shivers through a market already
concerned about damage being done to global demand by the trade
war.
But growth in imports was seen as a possible sign that
Beijing's stimulus efforts over the last two years were helping
to stir demand.
"Although the trade data did not have much impact, concerns
about slowing growth and a lack of government stimulus are
capping the Chinese shares' upside," said Naoki Tashiro,
president of TS China Research.
"Yet chip-related shares are doing well, suggesting
investors are still positive on the outlook of Sino-U.S. trade
talks overall."
U.S. Treasury yields climbed on the strong employment
report, with benchmark 10-year notes rising to 1.843%
US10YT=RR .
The Federal Reserve's Open Market Committee (FOMC) kicks off
its two-day policy meeting on Tuesday. The central bank is
expected to highlight the economy's resilience and keep interest
rates on hold in the range of 1.50% to 1.75%. Analysts said the much better-than-expected jobs report
offset mixed signals from recent economic data and validated the
Fed's wait-and-see stance on interest rates after three
"insurance cuts" this year.
Oil prices retreated but hovered near recent peaks after
OPEC and its allies agreed to deepen output cuts by 500,000
barrels per day in early 2020. U.S. West Texas Intermediate (WTI) crude CLc1 slipped 0.4%
to $58.94 per barrel, still not far from Friday's 2-1/2-month
high of $59.85 per barrel, while Brent futures LCOc1 were down
0.3% at $64.21 per barrel.
In the currency market, the dollar maintained a firm tone on
Monday, with the dollar index against a basket of major
currencies =USD standing at 97.648 and the euro changing hands
at $1.1061 EUR= , both little changed on the day.
Against the Japanese yen, the dollar was last traded at
108.59 yen JPY= , flat on the day.
Elsewhere, the British pound rose to as high as $1.3180
GBP=D4 , its highest in seven months. Versus the euro, the
currency hit a 2-1/2-year high of 84.07 pence per euro
EURGBP=D4 on Monday.
Sterling has been bolstered by expectations that Prime
Minister Boris Johnson's Conservative Party will win an outright
majority in the upcoming election on Thursday, thereby ending a
hung parliament and political paralysis on Brexit. FRX/